EURONEWS –– Cryptocurrency exchanges like Binance, Coinbase, and Kraken could be forced to collect the details of people sending and receiving crypto under new rules proposed by the European Commission.
The EU’s executive branch announced the potential change on Tuesday as part of a package of reforms aimed at tackling financial crime within the bloc.
“The aim of this package is to improve the detection of suspicious transactions and activities, and to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system,” the Commission said in a statement.
The proposed rules would require cryptocurrency exchanges to collect customers’ identifying information, bringing them in line with the “Know Your Customer” (KYS) rules already imposed on other financial institutions.
The new law would also establish a new EU-wide anti-money laundering authority (AMLA) with oversight of cryptocurrencies by 2023.